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A product that represents a clear technological advance over [#permalink]

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20 Jul 2012, 02:50

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95% (hard)

Question Stats:

33%(02:53) correct
67%(02:00) wrong based on 1077 sessions

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A product that represents a clear technological advance over competing products can generally command a high price. Because technological advances tend to be quickly surpassed and companies want to make large profits while they still can, many companies charge the greatest price the market will bear when they have such a product. But large profits on the new product will give competitors a strong incentive to quickly match the mew product’s capabilities. Consequently, the strategy to maximize overall profit from a new product is to charge less than the greatest possible price.

In the argument above, the two portions in boldface play which of the following roles?

A. The first is an assumption that forms the basis for a course of action that the argument criticizes; the second presents the course of action endorsed by the argument.B. The first is a consideration raised to explain the appeal of a certain strategy; the second is a consideration raised to call into question the wisdom of adopting that strategy.C. The first is an assumption that has been used to justify a certain strategy; the second is a consideration that is used to cast doubt on that assumption.D. The first is a consideration raised in support of a strategy the argument endorses; the second presents grounds in support of that consideration.E. The first is a consideration raised to show that adopting a certain strategy is unlikely to achieve the intended effect; the second is presented to explain the appeal of that strategy.

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A product that represents a clear technological advance over competing products can generally command a high price. Because technological advances tend to be quickly surpassed and companies want to make large profits while they still can, many companies charge the greatest price the market will bear when they have such a product. But large profits on the new product will give competitors a strong incentive to quickly match the mew product’s capabilities. Consequently, the strategy to maximize overall profit from a new product is to charge less than the greatest possible price.

In the argument above, the two portions in boldface play which of the following roles?

A. The first is an assumption that forms the basis for a course of action that the argument criticizes; the second presents the course of action endorsed by the argument.B. The first is a consideration raised to explain the appeal of a certain strategy; the second is a consideration raised to call into question the wisdom of adopting that strategy.C. The first is an assumption that has been used to justify a certain strategy; the second is a consideration that is used to cast doubt on that assumption.D. The first is a consideration raised in support of a strategy the argument endorses; the second presents grounds in support of that consideration.E. The first is a consideration raised to show that adopting a certain strategy is unlikely to achieve the intended effect; the second is presented to explain the appeal of that strategy.

Can someone please explain the method used to eliminate the choices.

I think it's a messed up question. None of the options work well.

The course of action endorsed by the argument is the conclusion of the argument which is "the strategy to maximize overall profit from a new product is to charge less than the greatest possible price." So (A) is definitely ruled out.

In option (B), the first boldface statement is "raised to explain the appeal of a certain strategy". The second boldface statement is actually 'that strategy'. It is not a "consideration raised to call into question the wisdom of adopting that strategy.". It is also not "a consideration that is used to cast doubt on that assumption." Hence option (C) is also not correct. Again, the second boldface is actually 'a strategy' the argument does not support. Hence neither option (D) nor (E) work.
_________________

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I was stumped looking at all the choices. Mostly, to me ,half parts of them are correct and other half parts are wrong. Given that this is an official question, can we apprehend the occurance such questions in the real GMAT.

A rare question of OG/Prep may not be perfect but it is very unlikely that you will come across an ambiguous question in the actual test. Each and every question goes through multiple analysis and loads of testing before it is made live. That much thought is probably not given to every question they include in the OG/Prep.
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Re: A product that represents a clear technological advance over [#permalink]

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07 Jun 2015, 00:37

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Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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20 Jul 2012, 05:17

VeritasPrepKarishma wrote:

thebigr002 wrote:

A product that represents a clear technological advance over competing products can generally command a high price. Because technological advances tend to be quickly surpassed and companies want to make large profits while they still can, many companies charge the greatest price the market will bear when they have such a product. But large profits on the new product will give competitors a strong incentive to quickly match the mew product’s capabilities. Consequently, the strategy to maximize overall profit from a new product is to charge less than the greatest possible price.

In the argument above, the two portions in boldface play which of the following roles?

A. The first is an assumption that forms the basis for a course of action that the argument criticizes; the second presents the course of action endorsed by the argument.B. The first is a consideration raised to explain the appeal of a certain strategy; the second is a consideration raised to call into question the wisdom of adopting that strategy.C. The first is an assumption that has been used to justify a certain strategy; the second is a consideration that is used to cast doubt on that assumption.D. The first is a consideration raised in support of a strategy the argument endorses; the second presents grounds in support of that consideration.E. The first is a consideration raised to show that adopting a certain strategy is unlikely to achieve the intended effect; the second is presented to explain the appeal of that strategy.

Can someone please explain the method used to eliminate the choices.

I think it's a messed up question. None of the options work well.

The course of action endorsed by the argument is the conclusion of the argument which is "the strategy to maximize overall profit from a new product is to charge less than the greatest possible price." So (A) is definitely ruled out.

In option (B), the first boldface statement is "raised to explain the appeal of a certain strategy". The second boldface statement is actually 'that strategy'. It is not a "consideration raised to call into question the wisdom of adopting that strategy.". It is also not "a consideration that is used to cast doubt on that assumption." Hence option (C) is also not correct. Again, the second boldface is actually 'a strategy' the argument does not support. Hence neither option (D) nor (E) work.

Don't you think that the ultimate strategy as per the argument is to charge les than the maximum price.
_________________

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21 Jul 2012, 12:23

thebigr002 wrote:

VeritasPrepKarishma wrote:

thebigr002 wrote:

A product that represents a clear technological advance over competing products can generally command a high price. Because technological advances tend to be quickly surpassed and companies want to make large profits while they still can, many companies charge the greatest price the market will bear when they have such a product. But large profits on the new product will give competitors a strong incentive to quickly match the mew product’s capabilities. Consequently, the strategy to maximize overall profit from a new product is to charge less than the greatest possible price.

In the argument above, the two portions in boldface play which of the following roles?

A. The first is an assumption that forms the basis for a course of action that the argument criticizes; the second presents the course of action endorsed by the argument.B. The first is a consideration raised to explain the appeal of a certain strategy; the second is a consideration raised to call into question the wisdom of adopting that strategy.C. The first is an assumption that has been used to justify a certain strategy; the second is a consideration that is used to cast doubt on that assumption.D. The first is a consideration raised in support of a strategy the argument endorses; the second presents grounds in support of that consideration.E. The first is a consideration raised to show that adopting a certain strategy is unlikely to achieve the intended effect; the second is presented to explain the appeal of that strategy.

Can someone please explain the method used to eliminate the choices.

I think it's a messed up question. None of the options work well.

The course of action endorsed by the argument is the conclusion of the argument which is "the strategy to maximize overall profit from a new product is to charge less than the greatest possible price." So (A) is definitely ruled out.

In option (B), the first boldface statement is "raised to explain the appeal of a certain strategy". The second boldface statement is actually 'that strategy'. It is not a "consideration raised to call into question the wisdom of adopting that strategy.". It is also not "a consideration that is used to cast doubt on that assumption." Hence option (C) is also not correct. Again, the second boldface is actually 'a strategy' the argument does not support. Hence neither option (D) nor (E) work.

Don't you think that the ultimate strategy as per the argument is to charge les than the maximum price.

I agree with VeritasPrepKarishma; this is a messed up question.

Yes the ultimate strategy is to charge less than the maximum price, but B discusses the strategy of charging maximum. Thus, the second part of Choice B is incorrect. It is not a consideration raised to call into... wisdom.. it is the strategy itself.So if it stated "The first is a consideration raised to explain the appeal of a certain strategy; the second is that strategy" then it would be correct.

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The course of action endorsed by the argument is the conclusion of the argument which is "the strategy to maximize overall profit from a new product is to charge less than the greatest possible price." So (A) is definitely ruled out.

In option (B), the first boldface statement is "raised to explain the appeal of a certain strategy". The second boldface statement is actually 'that strategy'. It is not a "consideration raised to call into question the wisdom of adopting that strategy.". It is also not "a consideration that is used to cast doubt on that assumption." Hence option (C) is also not correct. Again, the second boldface is actually 'a strategy' the argument does not support. Hence neither option (D) nor (E) work.

Don't you think that the ultimate strategy as per the argument is to charge les than the maximum price.[/quote]

It is. Read the highlighted portion again. 'Charge LESS than greatest possible price' is the strategy endorsed by the argument. But another strategy is discussed before the one endorsed by the argument. This other strategy is to charge the maximum possible. The first boldface statement is raised to explain the appeal of this other strategy. The second boldface is actually this other strategy.
_________________

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16 Jul 2013, 18:03

VeritasPrepKarishma wrote:

thebigr002 wrote:

The course of action endorsed by the argument is the conclusion of the argument which is "the strategy to maximize overall profit from a new product is to charge less than the greatest possible price." So (A) is definitely ruled out.

In option (B), the first boldface statement is "raised to explain the appeal of a certain strategy". The second boldface statement is actually 'that strategy'. It is not a "consideration raised to call into question the wisdom of adopting that strategy.". It is also not "a consideration that is used to cast doubt on that assumption." Hence option (C) is also not correct. Again, the second boldface is actually 'a strategy' the argument does not support. Hence neither option (D) nor (E) work.

Don't you think that the ultimate strategy as per the argument is to charge les than the maximum price.

It is. Read the highlighted portion again. 'Charge LESS than greatest possible price' is the strategy endorsed by the argument. But another strategy is discussed before the one endorsed by the argument. This other strategy is to charge the maximum possible. The first boldface statement is raised to explain the appeal of this other strategy. The second boldface is actually this other strategy.[/quote]

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13 Aug 2013, 12:15

VeritasPrepKarishma wrote:

thebigr002 wrote:

The course of action endorsed by the argument is the conclusion of the argument which is "the strategy to maximize overall profit from a new product is to charge less than the greatest possible price." So (A) is definitely ruled out.

In option (B), the first boldface statement is "raised to explain the appeal of a certain strategy". The second boldface statement is actually 'that strategy'. It is not a "consideration raised to call into question the wisdom of adopting that strategy.". It is also not "a consideration that is used to cast doubt on that assumption." Hence option (C) is also not correct. Again, the second boldface is actually 'a strategy' the argument does not support. Hence neither option (D) nor (E) work.

Don't you think that the ultimate strategy as per the argument is to charge les than the maximum price.

It is. Read the highlighted portion again. 'Charge LESS than greatest possible price' is the strategy endorsed by the argument. But another strategy is discussed before the one endorsed by the argument. This other strategy is to charge the maximum possible. The first boldface statement is raised to explain the appeal of this other strategy. The second boldface is actually this other strategy.[/quote]

I was stumped looking at all the choices. Mostly, to me ,half parts of them are correct and other half parts are wrong. Given that this is an official question, can we apprehend the occurance such questions in the real GMAT.

Re: A product that represents a clear technological advance over [#permalink]

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18 Sep 2013, 09:38

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I believe the second boldface portion should be " But large profits on the new product will give competitors a strong incentive to quickly match the mew product’s capabilities, " not the original one. It makes sense that this sentence is a consideration raised to call into question the wisdom of adopting that strategy.

Re: A product that represents a clear technological advance over [#permalink]

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13 Sep 2016, 13:37

Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.

Re: A product that represents a clear technological advance over [#permalink]

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04 Nov 2016, 21:12

A product that represents a clear technological advance over competing products can generally command a high price. Because technological advances tend to be quickly surpassed and companies want to make large profits while they still can, many companies charge the greatest price the market will bear when they have such a product. But large profits on the new product will give competitors a strong incentive to quickly match the mew product’s capabilities. Consequently, the strategy to maximize overall profit from a new product is to charge less than the greatest possible price.

In the argument above, the two portions in boldface play which of the following roles?

A. The first is an assumption that forms the basis for a course of action that the argument criticizes; the second presents the course of action endorsed by the argument.

-> Incorrect

C. The first is an assumption that has been used to justify a certain strategy; the second is a consideration that is used to cast doubt on that assumption.

-> There is no doubt casted in assumption here, eliminated

D. The first is a consideration raised in support of a strategy the argument endorses; the second presents grounds in support of that consideration.

-> The argument doesnot support the strategy, eliminated

E. The first is a consideration raised to show that adopting a certain strategy is unlikely to achieve the intended effect; the second is presented to explain the appeal of that strategy.

-> unlikely to achieve, means that the argument support this strategy? No, eliminated

B. The first is a consideration raised to explain the appeal of a certain strategy; the second is a consideration raised to call into question the wisdom of adopting that strategy.